Ford Motor had a long-term commitment to South Africa, its regional head said yesterday, playing down concerns about strikes that an employers’ federation blamed for prompting the US car maker to consider pulling out of the country.
The Steel and Engineering Industries Federation of Southern Africa (Seifsa) said the head of Ford Motor Company of Southern Africa, Jeff Nemeth, had told Seifsa’s chief executive that “he was under pressure from his head office to pull out of South Africa”.
Nemeth had told Seifsa of concerns within Ford over strike action, Seifsa spokeswoman Ollie Madlala said.
Nemeth spoke to Seifsa shortly before more than 220 000 workers led by the National Union of Metalworkers of SA (Numsa) launched a strike for higher pay that has hit the supply of automotive parts.
Asked to comment, the president of Ford’s Middle East and Africa operations, Jim Benintende, said: “We have a long-term commitment to South Africa… and we’re making news next week about future products.”
Ford wanted to respect the strike negotiation process, “so all we have to say is that we hope all sides come to amicable agreements as soon as possible”, he said.
The strike, now in its second week, has already forced General Motors South Africa (GMSA) to halt production, and Ford and other vehicle makers could follow suit if it continues.
The Numsa strike follows a walkout by platinum miners that lasted five months and ended two weeks ago.
A four-week strike last year by more than 30 000 Numsa members at major vehicle makers cost the industry around $2 billion (R21bn).
Ford sells around 6 000 vehicles a month in South Africa, making it the third-largest seller, trailing only Toyota and Volkswagen. It also exports vehicles from South Africa.
Meanwhile, Numsa said it was making headway with employers in narrowing the gap between demands and offers.
“If employers dig a bit deeper, there should be prospects for settlement very soon,” Andrew Chirwa, the president of Numsa, said on Wednesday. “We don’t think that the parties are too far apart regarding the negotiations.”
The strike that started on July 1 is costing the metal fabrication industry about R300 million a day, according to Seifsa. Stoppages are affecting as many as 12 000 companies and production has been hurt at car makers including GMSA and BMW South Africa.
Seifsa, which represents mostly large employers, has offered salary increases of 8 percent to 10 percent, while the National Employers Association of SA, representing smaller employers, has offered a maximum raise of 8 percent.
Numsa, South Africa’s biggest trade union, planned to present an improved wage offer from Seifsa to its members and make a decision on the proposal yesterday, Chirwa said.
“Workers are also losing,” he said. “The economy is also suffering.” - Reuters and Bloomberg